—— Robinhood to Acquire European Crypto Exchange; Bain Capital Acquires PowerSchool; BTG Pactual to Acquire a New York Bank; US Non-farm Payroll Posts Strong Growth; US Household Net Worth Breaks Record; GameStop Drops 40% After Doubling; West Harlem Building Receives $210mn Loan
1. Robinhood to Acquire European Crypto Exchange
Robinhood Markets Inc. will acquire the European cryptocurrency exchange Bitstamp Ltd. for $200 million as part of its strategy to expand beyond the US market.
The deal, expected to close in the first half of next year pending regulatory approval, marks Robinhood’s initial venture into the institutional business, according to a statement released on Thursday. Following the announcement, Robinhood’s shares surged by as much as 7.8%, reaching their highest price since December 2021.
This transaction comes about a month after the US Securities and Exchange Commission (SEC) warned Robinhood of potential enforcement action regarding its own crypto business. In May, Robinhood disclosed that the SEC’s enforcement staff had issued a Wells notice, indicating a preliminary decision to recommend enforcement action.
“Bitstamp has been trusted by its institutional clients for reliable trade execution, deep order books, and industry-leading API connectivity,” said Menlo Park, California-based Robinhood in the statement.
“With Bitstamp’s additional institutional offerings like the white label solution Bitstamp-as-a-service, institutional lending, and staking, Robinhood will enter the space with active and established relationships, infrastructure, and industry-leading products.”
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2. Bain Capital Acquires PowerSchool
A group of private credit lenders has provided debt financing for Bain Capital’s $5.6 billion acquisition of PowerSchool Holdings Inc., outcompeting banks that also sought to finance the deal.
According to a Friday news release, Ares Management Corp., HPS Investment Partners, Blackstone Inc., Blue Owl Capital Inc., Sixth Street Partners, and Golub Capital provided the debt.
Banks and private credit firms frequently compete to finance companies, particularly for leveraged buyouts and take-private transactions. Lenders, including private credit firms and banks, had been considering a roughly $3 billion financing package, with one version reportedly priced at about 4.75 percentage points over the Secured Overnight Financing Rate, according to Bloomberg. The education software provider had also attracted takeover interest from Warburg Pincus.
Vista Equity Partners and Onex Partners will maintain minority investments in PowerSchool, as stated in the news release. The transaction is expected to close in the second half of 2024, taking the company private.
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3. BTG Pactual to Acquire a New York Bank
Banco BTG Pactual SA, the largest independent investment bank in Latin America, is nearing the announcement of its acquisition of a wealth-management bank in New York as part of its global expansion strategy, according to sources familiar with the matter.
While the target bank’s identity remains undisclosed, it will serve as a hub for private banking and wealth management, as well as corporate and investment banking, according to the sources who requested anonymity due to the private nature of the discussions. The plan includes injecting $300 million to $350 million into the bank following the completion of the takeover.
The Brazilian bank recently acquired FIS Privatbank in Luxembourg for 21.3 million euros ($23.2 million) in September and has previously opened an office in Madrid. BTG Pactual also maintains offices in several global capitals, including Lisbon, London, and Riyadh.
São Paulo-based BTG Pactual already has an office in New York and a broker-dealer in the US, as well as wealth-management businesses in cities like Miami.
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4. US Non-farm Payroll Posts Strong Growth
US job growth surged in May, with wages accelerating, leading traders to delay their expectations for Federal Reserve interest-rate cuts.
According to a Bureau of Labor Statistics report released on Friday, nonfarm payrolls increased by 272,000 last month, surpassing all projections in a Bloomberg survey of economists. Average hourly earnings rose by 0.4% from April and 4.1% from a year ago, both higher than the previous report.
However, the unemployment rate, derived from a separate survey, rose to 4% from 3.9%, reaching this level for the first time in over two years.
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5. US Household Net Worth Breaks Record
US household wealth reached a new record at the start of 2024, driven by a significant increase in the value of Americans’ stock holdings.
A Federal Reserve report released on Friday showed that household net worth climbed by $5.1 trillion, or 3.3%, in the first quarter, reaching $160.8 trillion. The value of equity holdings rose by about $3.8 trillion, while the value of real estate held by households increased by approximately $900 billion to a record high.
The S&P 500 advanced to a record in the first quarter, fueled by optimism about corporate earnings and the potential for future Fed interest-rate cuts. Meanwhile, home prices remained elevated as high mortgage rates, around 7%, constrained inventory in the resale market, making many homeowners reluctant to list their properties.
The Fed’s report also indicated that consumers and businesses increased their borrowing during the first quarter, despite the Fed maintaining its benchmark rate at a two-decade high.
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6. GameStop Drops 40% After Doubling
GameStop Corp. shares declined sharply after the retailer unexpectedly announced its earnings and a plan to sell up to 75 million additional shares, just hours before Keith Gill’s highly anticipated return to YouTube attracted speculators.
The stock dropped as much as 22% to $36.20, with over 54 million shares being traded. The shares then reduced their losses to 15% before trading was halted due to volatility, erasing earlier premarket gains.
The video-game retailer’s first-quarter results, initially scheduled for Tuesday, revealed slowing sales and a larger-than-expected loss. Additionally, GameStop announced plans to sell up to 75 million more shares at prevailing market prices, on top of nearly $1 billion worth of stock sold last month.
These developments add to a volatile four-week period in which GameStop shares fluctuated between $16.88 and $64.83. Recent gains have been driven by posts linked to Keith Gill’s social media handles.
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7. West Harlem Building Receives $210mn Loan
New York City-based development firm Artimus has successfully secured $210 million in financing for the construction of a mixed-use apartment building in West Harlem. Valley National Bank provided the funding through three loans: a senior note worth $122.7 million, a note worth $55.2 million, and a subordinate note totaling $32 million. Yoav Haron, a partner at Artimus, signed the loan agreements.
In collaboration with Grid Group, Artimus plans to construct a 28-story tower at 1440 Amsterdam Avenue near West 131st Street. The project will feature approximately 490 units and include an enclosed parking facility with space for 273 vehicles. The site, previously owned by Lefkas Realty and used as a parking lot for NYCHA, is subject to New York’s expired affordable housing program “421a,” which requires at least 30 percent of the units to be designated for affordable housing.
The article “Harlem Apartment Tower Secures $210M Construction Loan” was originally published on Connect CRE.
Source: Commercial Observer – Valley National Bank Provides $210M Construction Loan for Harlem Apartment Tower
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本文内容来自《Financial Times》、《Bloomberg》，以及《The Real Deal》等多家财经新闻媒体。